Pros & Cons of GST Registration Online India for Small Businesses

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Pros Cons of GST Registration Online India for
Small Businesses
GST i.e. Goods Services Tax was announced as a
significant shift in the taxation system of
nation. It has been combined the various indirect
taxes in one that results in the simplified tax
structure. GST Registration Online India is not
just important but also very beneficial
specifically for small businesses. In this
article we will tell you about the pros cons of
GST Registration in India for small businesses.
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Pros of GST Registration Online India for Small
Businesses

• Input Tax Credit

Small businesses that have been registered under
GST are eligible for ITC i.e. Input Tax Credit.
ITC offers tax liability and allows businesses to
claim refund on GST that has been paid on
purchases business expenses.

• Nationwide Market Access

Small businesses can expand their market reach
across the nation. As GST eliminates the need of
multiple state taxes so they can sell goods
services across states easily with the help of
GST Registration Online India.
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Pros of GST Registration Online India for Small
Businesses

• Legal Protection

If small businesses operate without a GST
registration then it may result in heavy
penalties as GST registration offers the legal
protection to businesses.

• Increased Competitiveness

With GST Registration, small businesses can
compete with the larger businesses. Most of the
corporate clients vendors prefer to deal with
registered entities. So by fulfilling the GST
compliances small businesses can attract such
clients vendors.
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Cons of GST Registration Online India for Small
Businesses

• Compliance Burden Increases

Registration under GST includes the several
filings like monthly, quarterly, as well as
annual filing. It can be challenging for small
businesses to manage them as they have limited
resources. So, GST Registration increases the
compliance burden of small businesses.

• Cash Flow Issues

It can be difficult for the small businesses to
pay the GST on regular basis before receiving the
payments from the customers. It can be
challenging for the small businesses that deal
with the delayed payments from clients
customers.
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Cons of GST Registration Online India for Small
Businesses

• Cost of Compliances

The GST compliance will increase the
administrative compliance costs for small
businesses specifically for those who did not
have the enough resources in-house expertise.
It can be costly for them to hire accountants
consultants for GST Registration needs.

• Complicated for New Businesses

For small businesses that are just starting, it
can be challenging to navigate the complexities
of GST Registration. It can be difficult for them
to understand the different rates, categories
filing processes. It will discourage the
entrepreneurs from opting for GST Registration
and it will also affect their growth potential.
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Final Words
GST Registration Online India for small
businesses is very beneficial but it also has
some drawbacks. In this article we have discussed
about the pros as well as cons of GST
Registration in India. Although, it has some
limitations, but it will be better for the small
businesses to get GST Registration for smooth
functioning of their company. You can also
seekdisadvantages the guidance of professionals
like Legal Pillers. We will help you throughout
the process.
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